The Impact Of Direct Channel On Money-back Guarantees Strategies

With the popularization of mobile internet technology and online shopping,the dualchannel has become common mode of operation for enterprises.In order to improve consumers' shopping experience,companies have launched money-back guarantees.However,the direct channel increases the uncertainty of product matching,which will lead to increase in the return rate of consumers to a certain extent.So companies will face the challenge of how to properly formulate money-back guarantees strategies to ensure profit maximization.Therefore,from the overall perspective of supply chain,this paper discusses the money-back guarantees strategies of manufacturers and retailers from the following three parts.Firstly,this paper studies the supply chain's money-back guarantees strategies under different distribution channels,and analyses the influence of manufacturer's channel choice and direct channel on retailer's profit.The study found that single-channel model retailer does not always have the incentive to provide money-back guarantees,and the money-back guarantees does not always have positive effect on the manufacturer's profit.In either case,the manufacturer always opens direct channel,and when the product's net value and returns hassle meet certain conditions,both the manufacturer and the retailer can increase their profits.The dual-channel model of the money-back guarantees strategies is related to the returns hassle,the net value of the product and the satisfaction rate of consumers with different channels.Changes in consumer surplus are only related to the money-back guarantees strategies of the direct channel.Secondly,it studies the supply chain money-back guarantees strategies with retailer's risk aversion under different distribution channels and the manufacturer's channel choice in the context of direct channel.The study found that the single-channel model retailer's money-back guarantees strategies depends not only on its risk aversion,but also on the net value of the product and the returns hassle.The manufacturer do not always open direct channel.Only under certain conditions,the manufacturer has the incentive to open direct channel,and direct channel does not always erode the effectiveness of retailer.The dual-channel model of the money-back guarantees strategies are related to the retailer's risk aversion,returns hassle,product net value and consumer satisfaction rate of different channels.When the retailer's risk aversion is large,as the consumer's satisfaction rate with the direct channel increases,only one channel in the supply chain provides money-back guarantees for the best decision of both parties to achieve market equilibrium.Finally,the supply chain money-back guarantees strategies with the retailer's vertical shareholding and the manufacturer's channel strategies in the context of direct channel is studied.The study found that single-channel model the retailer provides money-back guarantees that do not always increase their profits,and wholesale price is on the rise as retailer's shareholdings increase.The manufacturer does not always have the incentive to open direct channel,and the retailer expects the manufacturer to open direct channel under certain conditions.The dual-channel model of the money-back guarantees strategies are related to the retailer's shareholding ratio,returns hassle,product net value and consumer satisfaction rate of different channels.When the retailer's shareholding ratio is large,if the product net value is low,the manufacturer and the retailer will provide money-back guarantees only when the returns hassle is small,if the product has high net value,the money-back guarantees is provided in one channel only for the optimal decision of the supply chain members.